In the ongoing saga of teaching good behavior, I have come up with a new reward system that also teaches about money management and counting. Win win!
What you need:
1 piggy bank
Play money
Toys of a varying value, so you can “price” them accordingly (luckily the dollar section at Target has a plethora of Dora stuff right now!)
1 envelope to keep the money in
How it works:
We pay out $1.00 for each chore, task, or good behavior. If she picks up her toys, she gets paid. Gives her brother a hug and shares toys, she gets paid.
This system also works on the flip-side. She does not do what is asked, we take money out of the piggy bank. She does not share or is mean to her brother, we take money out.
At the end of the week we open her bank and count the money (she does the counting). Then we present the items for purchase. She matches the price with her dollar amount and chooses, or if she does not have enough for the toy she wants we put the money back in the piggy bank and continue to save.
This has worked wonders for behavior modification and with counting. Plus, it has introduced her to saving and spending.
4 Replies to “Teaching Toddlers About Money (saving & spending)”
Great idea, Kate! How old is Ellie? Or how old was she when you started this?
She will be 4 in October, we started shortly after she turned 3. It works like a charm!!! Teaches counting, saving, spending, and rewards!
I knew a lady who did this with real money. Her son got a quarter for every toy he picked up. He was 6 when they brought the water bottle to the store and poured all the change into the coin exchange machine. He proudly told me he was using the money to buy a bicycle.
I just love how proud they are of their earnings!